SoftBank Group is considering an acquisition of Allied Universal, according to reports from Reuters and IPVM, with discussions still at a preliminary stage.

Reuters reported Oct. 16 that a potential deal could value the U.S. security services provider at approximately $18 billion, citing a source familiar with the matter. No final decisions had been made, including on price, Reuters reported, citing Bloomberg News.

IPVM, citing original reporting from Bloomberg and the Financial Times, reported a potential equity valuation of up to $18 billion, with roughly $12 billion in publicly traded debt bringing the total transaction value close to $30 billion. IPVM reported that neither company had announced a binding agreement.

Robotics ambitions

The reported interest centers on SoftBank Chairman and CEO Masayoshi Son’s ambitions for artificial intelligence and robotics. Reuters reported that SoftBank would look to eventually replace some staff with robots for certain security tasks, although deployment of humanoid security workers would likely take longer.

In its analysis, IPVM described Allied Universal’s customer base as a potential channel for deploying robotics across commercial facilities. Allied claims to serve more than 400 Fortune 500 companies and employs approximately 800,000 security guards, according to IPVM, giving any potential automation strategy substantial reach and significant implications for its workforce.

IPVM also framed an outright sale as a possible exit for Allied’s private equity backers following delays to the company’s planned initial public offering.

IPVM cautioned, however, that earlier security robots have struggled to replace human labor or achieve broad commercial adoption. Its analysis cited limitations involving navigation, battery life and the ability to perform physical tasks, raising questions about how quickly newer systems could become practical alternatives for guarding work.

SoftBank declined to comment to Reuters, while Allied Universal did not immediately respond to the news agency’s request. SecurityInfoWatch has also contacted Allied Universal for comment.